EER TY eh gt erry cof) Faas Editon cellas Cer) ess AccounTING Hor MANAner\el GECISIONS = > pecourh4 45 a art & Rewcting, Financial wansactions spre hrorcia), ovens: Lo rargaction —(Gmeng Takes place) tht. Fre Bacent > Events 2 eum ani SG he pIFe . Ledger ak Classy*9) gles span ealone 4 . narial atakerments: imArcecunting cycle : = | 4 dant Analysing th rite \ re Cadentilying He pecoums wwlved in U he Transactions) a @ 4 2 opplying the obit [cveckt Rules dP Accourtig Caaentifying tthe ebb Acca % Ameuat anwled) \ | (Adentifying the credit Acecunt- Areeunt rvolved ) Q- 3 passing the recessay sournal entries in the Book, \ called primary Bock] cxigral eoky _-pouwal Book. leer pecunts in the ledger Bock \ based on he Aecount tate the respecte 4 Opening Neessary Classtlying the entwes involwA posting fe enties *0 Accounts Ledger- Balances ty Respect be Teansach0s & Ssnetng 5. prviving the Ledges ales net Gh vebt 4 cre tuk the net balance. preparation dL Staterrent stat the Ledge Ales 6 Palances svat Balarce hate mete OS cf partcular dates rronth ona| Quarter ena| Year ork— aantidying the missing enti st 4 an Ties Co) Petsustrent Tnformation, Tocieved eee fi a aor preparaton gp perl balarce Sateen passin J necessary adaustmen Beast t be books of Acccunts 2 Balance, YHCCSSATY ge prepare again ryci| Balarce after passirg adsustment entries adtusted avail palarte.! seeoee we g. prepare Fénancial statement og) siren aterer |. statement no: 2- pit 3 Less agproeniston @) Retained Car ces Se Stareren’ to prepare Financia gkatement ne NOrd— palo arora position gaterre ot ih progore Financial: etre ve al aatermente 1014 = cain Ha 12 prepare FING closing os Say eae 4 Be pass Neces bei Yy. cary Fence egrneadd 1 " eeece == A Types P Aceatints: poe ae asi . “rere Personal Accounts: ropersenal Pecours, | ee — deals with persons Accounts, : -» @larae Novira| | Ren > Natural persons > Resousces (Deals) | oa > artlicial persons ° Cheals): | - pol fi weg F > Deal with exgaini sation Geng He \ -(Panchise Rights) Et Cusing brardrae) | “Tangible : “wodle rear ks “gk ws Plant 4 Mackey Liscences bxtleings Software Land oesians Furniture ois Fi¥tures [Equt prrents” Goodedil) Micbor Uckicles , Muestment in Stock] anventory shares | eonds Cash’ Nominal accounts | “empoary Accu 2 ee “Incomes, . Expenses Edis Lossess sales InCme + Raw rmattevia| Consumption Cpenss Other “Trcome «Pour pruel exp Jt . Employee cose Csa}avis| cages] eon)AL, e we Resear a jgsion TCOME ne 0 Brae ee more ant ea Bt po por eo eaves erent sale + > AAmingaation + Rerk exp, pei » Coren xe Creep hone | + Repotns i : "SQ Motintarence exp * Roles & axes exe «© enertatinmenk © oP salting 2 visteios 1 FC . ever cee exp + Gpods rranseataeen AF + Re samples XR + pranch Redd (Godeor Rents exp + salesman ~veavelling + galestnan comm OHF = ackeiog chaage® o*F « nsurance oP delivery yehicles * poddblts Loss-| Debithe Reciever ferSoral Ale los Ral ‘Ae: Qebst chat comes in Ckectt what Gas out serminal a ¢ Rebit all Expenses 4 lasses Credit al| tncomes 2 Gains. “=> Motor aar ale Debt “er pwede cao TO TAA Motos ak Credit pA PTaRcTR Cetrg Motor: cay purchased Lom rere motors Ak ) coages Ale Debt we @neae care) bit We “Telephone charges nt DFP N Transportation Changes Ale Debit NE Eonus el mbit ye Advertisement ep Pe BebiE ye to cash pl ete Re Que a cwed)wurrahse eens \- ro SH porte # Sn a¥hnq erat Sees Date particulars Leno rebit credit Pao “cash nb BY aut Vem “Tp capttal tle \oott | ope a par ticulass Leno Debit Credit “ : Amt Aime spr Bank Ae br rae =p Cash Ae Gor \ Furiitue Ale pr tb , ur W silkamal €n Hd” a, Purchases ale © or ple Th we Lidale Bou Joc Ld ale pr, Boer D Bank ak Bor BpcL Bd Alc Py eae “TO sales Ale 7 Foon Bank Ale ox Sour = To pel Bed Ale Sour Rent Ale Dr Ler WD Ban kak law Bant Alc br Bu Set To commission Ale aigh 200 woages Ale or PR dertiorany Ale PY tc \acr Salaries Mle Gs ‘’ Qe Te Cash Ale Ser th aan Nilkamal enterp Ld Ale pr Bor av TD Bank Ale Ser th gh aan Machinery ale or “Wh Siemens Lid oF p v *San Bank ale 2 “y0 Berk Ale 7 rae E cleticity chases ple bY = pank Ale i pr, 608" bow \oo e* \worlez Sed profit a nd loss" Grane ee AB ales Trcome 1% cr (40-410) ood 4 B+ okher Svorie Comment cine) A -| C. -plal Store Ta ee Expenses| costs 5 Purchases é A- cost of. Holes] Consumed Core) ee B+ Employes cost-(24z) (sal tages) — CA Anfnsteatve Expenses (Rats eas, €) 8 ow Carts) Ds tal expenses a oe probit: =Thal nese — Thal Expenses PEIT (polit tebe Ofre pubik Lose | arene Shatemetl HS obiediies: and ts significance ant tmporlans ant th components, protit 2 loss -Ale and example oP pat aleab Dw \ 2 = 4 & & + @: sf % pefine palana sheet, ils obvedWes ane jhe components 4 Balana sheet and sume i ame Ake pcceunt Bo - 8 Land & wate as—0 oe Plank & Macktrery Bs- A Furettuve 2 rirtures es-L Ss pyarle as —L Sundry cseditors |xccurk: poy Troe crestor PAL-T Sales Reverve PAL Ukevast Tome PAl—¢ Power f Fuel expenses PAL-€ salaries PRL-E wages pRL-€ probing gstationr’y par-€ hie Rerk EP ps9 Casha ennk fal pis 0 Recivebhe [Debtors . pare Aduertisement ee HL-€ qrovell ing ar pls-prashare capil . PRL-E pict beio” exe ebst ‘onl 20 30 sb 80 YO 30 20 d 86 \20 w Ysd yo 5s0 |«/ PY AN els talon, 27 Gabi Iities 5 Credit galarce als Siiturds 5 credit Balane } Grrenses > exbt calorie dnl Theme 2 credt balance} PORE AUP wits poe Sales smeome 90 BSP} ro) Theres Income and Be in stock Chsing stock. 0 © pening Stock: _© ov Teal Dome Expenses; Material consumption | ruchases iag| 2a Eroplyee cost Salaries 4o eas ay Potcere Fuel Etperise= @ General Pdioo _expaxes : printing stalionory oPPice Renk EXP travelling “€xp Selling 4 Distribution » xp + Ady exp Yo Distyi xp 4o 80 Depeectaton| Armor tisation 40 otal expenses "00 €pit/Pe1 €). mt ° o PET oO ©) TAX 5 pert | nee poteSheet as Balance gz {abilities mk: Assets ar D Shascholder Fares 450 Land 4llg p00 a Pe Balana ° flank # machbney BSD Long tom Liabilities Furnace greta Long funds, ° aibangioke FA ° bond Pinds 2 o Curren Assets : cash) park alana to Curent liabilities: ] cee Redeuablis [pebtos \20 Bills payable 200 Sundry creditors 150 asd ola) Assets pla LiabilitiesZ sakes Income commission Income smre| Dec 7 Stock closing stock 0 aa eo opening Stock 0 otal rere A Expenses ¢ expenses Material consump. salaries 2 04s poet Fuel #xpenses Gera) earstecbive £102 office Telephone OF fice Renk erBalance sheet as on Liabilbies ne fol fal: Share capital 300 tet pot _ $8 gp org term Liabiliies: Sam Long ftuoks 200 Bond furds _o Bs ‘unrent Liab [ities + creclitors loo Y tolal Liabilities = FO Asset Fitled “rang bk b Asset: Ame Lard — purldings 150 plant g Machinuy 185 Motor vehicle = 37 Snkangibk Fited pst Curent Assets: Cash ¢ eank ealance 180 © Iso btoxs ae be Sage Thal assets Foo ——s 180 Wawe of Account 00 road a glee 7 2 plact % machine Is. 3 motor vehicles as y Long term Leane E. surdiy ére ditass 6 sales Revenue > y Commission om |S50 = Exferbes : ss & 4 Matertal coreum i109 employ ew oat? Salavies 4 tones © power p Fuel es luoMice Tekphone ep ice Rent cep. celliog 4 iSte bution ¢ Bad debls loss Sales men “rravelling ep 20 Advertisement Pp v7) Diswibution Exp 4o 20 Depreciation @ Tal Cxpnes = _y pert] Gey 2 aot pay ) a4 peTpalarce chet as on + Leabilities Avot me SAAS ghavctole funds ons vail ce ie Filla “range &) nek po 20 ~ fe" log e™ Liasliies: plank: Rraachineng \o Land 4 exildngs x Furniture & Filtures SO Curent Lials tities sundry pees Came Poses: Debtos 25 aa Cashaeant bal’ 40 550 a 3) pote a las Reveow | ayncorre Sales —ore \s0d commingssiod ke "Seo Ww awc| ec 9 stock Closing shock 60 ( ) aoeCxpenses : Material Consumption 90, enpbype cst: mm: salaiies & ages 6o . : -" Power pFuel 180 : ” | a SORT 140 ‘ Long + General adn Expenes : ‘ Lent bce Telephoe EXP Sd Cus office Rent exp stomp a: Celli ppiseibation_ Cp: Baddebts less 20 Salesmen Travllin. 30 Aduertesement 40 é pists butson le 3a Ky) bopre ciation Total Expenses = pert | €81T 280 €) nt ©) pet ep (o 250 paT ™ a-) = galans Sheek OF On ~- jabilities rg -qneloler fonds 200 Fi ee are a ee Yed Tangible a Ose ii abe plat secon jer funds 100 ey T ete lia: aoe suharq credits S° Cone Oo? debtors 2 600 Cash 600 wh p Bank babna 40 go Casing stock”. 0 poh gis OF Besa ses ebsing €) opening sock tal Dome ey Ue aa | Expenses : Material consumption Ereplogee Ca : ‘ AA Salavies P. toag eS 60 itl ’ . hone bo taststanding solaies COE Est gra power P Fue! $0 ‘ c Lng © antstand ing poy IS IS : Lon Fuel Come Germal_edminsseabives Pt, , a ofbice Telephone. Expenses 50° ow 3 6) ou office Bent Cypenses % a lng 2 cistsibudion : tad bits loss pdnnsemen PY pisyibution exp mn )30 Sales rer Taal _30__ | $0 Depreciation Ne 3 sides aes port | €B1T 210. €/anlevest wv = ©) coax — ial ibay . Asses Filed Assets : plant 4 Machine _ Landy 'gusldings Pumiture p Fixtures Conent essets + fe ebtoos ubrandiog abies, 25 cash 4 bank walinee putstandling et Is closing satProblem ; —ae | Pokt #less ole: Benue] ancome t \ew Saks Income sD Comm ssion Ticome GH comission 20 Mmelwe 44 stock, ¥evable Closing -skock a) Hovering stock e) tal Irrome ess Tea x pen ses ASD Employee costs ; © Gulstanctng Salaries 20 Pouev aie Expenses 3 | Gpennal pcvinshecrtive Expenses: dbice “We phone Expenses ‘ D office Rent Cpe Sa Mba Li “orlstanatg* pin ty Pe tin cdlng 3 Puoipahataw:_ Disksilutve: Desh bution yp Yo ene pavers ed a G2 pepe ph epLabi likes share holder anks sy) ot pohit- ~ i Ligbilities: Hermonas: 7 |Hiese Current \rabiCommision Income HRcievable Ceciease Sin stock + chsig tek opening stock rwhal Income i Expenses z By SANS | Matertal consum ptian Empbyee cares Salaries 2 cng es Watstandig salavies 20 Cash # Bank bale. 2sy x your lo Closing steck 30 a Prepaid Rent ic ES Commission Recuable 20 oft a oR Sy a Sts" Sts emer oO 6 2000 Bo 3 sd loo " 2060 {250goer q ruc expenses General pdmtaseeatile EXP, dice Tele phone £xponses et amsuyance exp sp E) psepaid vs) autstancing printing 124 sellin 2 pistvibution = prseibutive EXP - ; uo pavertise ment EXP . w =Bad debs 2s » peprecta tion oh plang ence ° to De cia ion on Pula’ 2 e s repre cation on Farni ata\ expenes—— > IS cart pei T gus ©) stores xP Loans te per as” : © «2 Tak ) AS a Wemar « flare sheetas on «. Cabitstes vl ae we | Shtetolder tints as Pees saan Bt pole aig land 3 eualdings ji top, | | (4 um Liabsilities “©) coprectation —_) Long term loans 20 Fursiture ae by | Cunent- tables: © ie, Stich Cred:tors Cunen Ascets: Bills Payable Ia Cash x Bank balane fo Gusteand ng salavies 30 , Debtons 2s0 Guslanding’ printing 25 ©) Gad debts, RS) n0. a : Closing stock, b rst SB Preraid tnancne 25 Commssion wecvakle 305 as Ey ope iG stock ‘ yt credit plant 2 machinery ~ pee land § kutldings = Long teem Leans| wanks pills payable ae sales Revenue os 2co0 Commission Revenue w power P Fuel expenses + {00 Solaiies % woages to. Furniture £ Fittures ‘100 hice Telephone EXP so snturance €P So cosh Bane ralante 40 Recjevabl | be blows Bey advertisement exe a ant exp on Lean a 220 share capita ‘ pisecibulion EXP ? purchases arterial De precialson ene ‘plank & oe Me 4S | ee| AR ional mmation + I clostag tock ason aistimach 50 Lakhs 2 oukstaneltag : Salaries 30 Lakhs Cau 20 Lakhs 3 Bad delts . 25° Labs 4 Tmsnrane paid for 2 Years 5+ Pavide cepye clalion + building to Lakhs Furoituve s — Lakbs |S Commission Rectevable 30 LakhsDepreciation / Amortisation cation [pmotsntion 16 the paciss PD albaatin oP a cons to the putt p Loss Ale and reducing an the balance Sheek 19" present teow 4 44 values \ ‘ase’ causes ob oi proctor tarisalien ible Fixed Assets + pepeaation %S chaxged on Teng tr: plank @ Machinery, Exanttare, Building . and, compte equiprrents) fe enveliclea” ah spmonasabion Charged on anbarg ible paved esses ex: Goocill patent fights | Franchise pigts| nosed copy ¥ | Hicensess re Ryp-co, cuss Lo dpseciaO" . (ay «sing vale edt! a : them a use & pssets tovse the’ od. cHivity as we , ls & sewiles * vel i)J dblectivas op carging tops J 10 APleck re prolas [losses of the enterprises. 2. P pre. 7 Presert true 4-Lar vahe of Assets tn the balance sheet, Gos 70 Replace Ue Ascoks by Proiding topie ciation fads: al Can cal Spon cas copes) => Sine re, 4 © Bpre eiatioo] arostisation is non—cash bx pente, but aeumilation f crprectation funds uscla) fr Raplacemone the Assob- bepeectation « h hbo Live. mettod’ Gi) Fed. nstallrmei- taethod - - hin f [Reducing balance Method (€) written dean * 9 ,00/000 \ x 13000 = can ati fe 246,000 PS- y avin ‘te te ee yes F 5 , 00/000 Dy 200 ai , (Joys a 08, 2 # r a for 2 = 1.00.00 25 | 451000 > popreda~ (400,000 = 2,30,00 eepeciation fr 2028 [,00,000 =, 59,000 fear @ vate @ purcine = 1-4-2024 2024 Depreciation tar 25.5 Depreciation tr 2094 S. 1, 351000, Cost Machinery = 16 100,000 2005 aselut Ie = 3,c0,000 unbs 2orb Salage Ute = tok dost 22k 2028 ~ 25, 00,000 — 200/000. y 33000 Mis, \ 20000" loom) $0,000 30,000 40,000 alin fe, 20y f ; Be Yess 15,0060 [1801002 5 9 op 300,000 - = qo,000 (isi et 3) Lot iah Pepeciation fy NS 1.C hy x sok) HAT mo 85g (u K 30k) . > ol Depre Cation fir 2025 > I8o@0. (0, wot) { 00,000 » |) > cope ciatin for 2024 = 200,000 210° 5 10,000 A NLa mackie Hour Rae Method : pole & purchase = |U-202q ed UCD Pralegie 2 091600 estimated usetal tn tern dns - stoco har — Satuaqe = ‘sh pies WAERS Hours (madine wneing a) 2004 [2200 Bee Is tso 2006" Boe © 9004" sil SRe ) 828 : Depeaator = cost — Salvage value x nond-eachine Carmoied use| Ho Ue gat? machine in ders d moe voduring Year Yours ssdquust aon dye 2024 «toc OH? 21° 50.000 ’ = 4p360 i Bem hoe 2025 fn X isi)( sok 5t 5% =t= eens pa 2026 6 x 1500) (2b -10E = Y sob) ' = 28,500 ' F 2 wee ec 3 = 22,800 suk : ; 2028 ~ (ih x 8300) PL-lok y aac = 3), S40 sok Mile 3 Method : ozs F 4 Ceprectation = ost - Salvage life Nore Kalaweters Estimated useful’ life tuned -log ged @ the vehicle» in berms uring the year | P kifornetens et ‘pale f parchase | 2a -202y , tab duehicl = 8,00 000 - : Genital inlems = 2,o0;onkyns”** J -rumber aii sae = 15hNovo Ems. Tanned 26000 qo oto» 1§000 60,000 port 35000 gation fe 2024 = 8 100,000 = [2100008 + 2590 gee 260,000 , Seis “= 85000 : - son an * + ah piprectals fev 202s! + gL-H2L y yok ‘= 1961200 > on papre cfation for 2026 = gy -1-2hi yagk = STOP ciation : : 4 g Pate, elegt Pak AGok = 204,000 he 2h ‘ os 3 - Depseciattoo for 2028 = gi lab yagk~ "N° 21 ie 205008Cs Bovey valuation Muentory valuation Istock valuation Bait Steck 4 Raw material Stock ob seme —Penished qos Stock: fsPins ached goods — | ~~ hwntery valuation % a. technique used 4p are at th value of + clsig Sats fn Lhe purpse & Proanctal Accouns, * | Statements preparation. Obieeties ay anentoyy : (Coleg g Fees untg) ! For Smonth production 2sales Aatuity. 2 TD meck th Customer” Dormnds 5 3 TWtake a chaniage Ot rte changes 1 Represent s Tnventory true $ foie values inthe fron:i st Tetris | welds of Iwenbog valet, LAFF relod (Fist ty fest cue tnetfod) Ph Lire Metled Clase tm Lhe out method) 3: HIF method ( bighest Past out wwe thoct )PC method (simple Average cost method) gue method (weighted Average Cost method ) si method (specifhe xdentstacadion Cost RcLiss)9 qe Re method CReplacement dost: ryethod) sino “Yess a tems: ‘ periodic: System a. porye Wal Se von v0 Nidevial Reyesiiion he Gey wo Conds Reon ecko foal i rf ; . oe qo ps ante: 0 ps | ast? ; a aed* purchases MeN@2 x | 28th ey Geno's 2th Aprcalculate. Twentany valuatan using FIFO tmethod Undey by) Date Men {Gen wo particulars GY Ray 1p. np. Oo foving stack 2000 Looe | 5th ew Gea co\ purchases pe fons 4 oth aw | ™ wieaool snes, sth apr Ge ooa purchasas a tors — 20 Apr MeN O02 ‘ssueg hs : E _, bate Galen) fartiulars nits © Rate 1 eel ewe] opls = 20m 4 sth Apri) GRrve0! — purchases 3000 & 1 bth Ayn | M@njoo) = _assues isve nh Greaoop. Purchases ooo * rng MRNOL “issues 1800 aot apr Gen 00.3 Purchases 3b 80 da dae pve Bsues, Woo Comerkory valuatte under LYE) ~ Wiican } 1) Rae 0oo NOW de | res case FRO ro Cote os p08! ansgt (oo Neel ee o, | oxh aed oO | St ano 'Z songs | (oo New ag“one | 09/1 cst ite ‘tay pCa cre oe thay | ee] re tt aeet St pri Wetevicn 2 + pri + SR TY n ages feerge ct UiPr Hehe ASPs Voss Uk Yok 1 Grdtune) _— Sectic conta Yreskion cok methels ee “Bertaty the etocks Yorn Grich price Lhe edie We fo amine at She jnvanbagy valuation corner Cok toekhod + : el ; shock balance uysks H curren roarke PN Lots ard erly Simple fon. ge cost raekhod 4 5 Sole eq, cok = ptt tists 3 0 oes noe Ot| balance Juachases purchases cassaes fucchases ASSueS Panchayes sues Rote 20 Psluqh 30 B\unt Yo Ps | un. parkulans: | Recens feng bal purchases furchases | sues Purchases —| puchase 4beget] | 4 Peet 2 be | | ooo" st Le | cooiat'z| | co0'@z| 99 ceeyt'z| SFE] ome mo! alle woh! Z 0g | 0002particulars oyertng ba) purchases purchases Tssues purchases ~ ESSas Purchases Bsus particu) ars ope! purchases purchases ssues purchases sues purchases TSSwes 9e Rs lune SoRs| unit- Jo Pslunit Go Pslasik so Bs luni Rate a bs [unit 80 Rs [unit Ao es Lunt ge Rs\uni- So Rslunit"91 ih-e9 |000¢ ong'es'3 [heey | 070% o9'9% AC Obes [roar Be eon 'ose p=] 009 Oehgs = ght! Bass | earn yg ons | “Seeqsic SESE] 05h | omer Set {C0008 SES heh ie ohbisi'Z| 3b-eE | seqste| sb-tk | case oe! sanss- hye case \savyzsnd h\sz sans hex o0og | S¥Dyn} h\s\ Senssh. ha nog sappand ht ong segnypand) hs te auado wi Dymp ed PaByraW | aUA | Calculation ame valuation + ~ + «(using specie cost matho) a Arte at the “manly ay as on 2th Are | Opeing Balance 3000 \ ii ) All purchases 000 wos sve) » Wh a Balance 1,s09 sth abo Shock {mventory "6 sdepsstied Dem the foVos 4 Purchase los. : & epeibie value 2600 to ja sgcS 2600 sb 1,00, 6 2s [oo 250,000 350 ss (1,92) 80 _ es $0,500 TNS pe Eicakulation 7 , i lation mente valua bon using Specific. cost meth y One ime ak {he fnventry Auantily % 09 20% py “the chosing Snveolory has ben tduntiPied as Pllous , \ aoye unis ove fam 160 2s [uni - purchase lok- Dot units are from 900 slant ~ purse be Vode Units are from S00, Runt — purchase fob Yor. units are fom 400 Psluntt — —Pidrchase ot B00 units Iso) SOD, g \ 2000 units 200 4 00:00 o00 avis goo B,00,07 Yoo units 4 (bajo Yoo units 21 50,000 on 27S a = tly ovening ba) Oey Bake sly Jurchases soar | , ‘i 400 200 1oly . ‘furchasy com, ae 2) $ ; age a) Is a 4 qu chases, ba 2) ssues 500 500 ly pO “4 (000 soly Isecakabstor Seventy valuation using Replacement Coa Method prie at Lhe inventory auan tity ason ao” ppt) fj wigl 2s. 32 curren Parket price of the tateria a